21 August 2017: Nifty Elliott wave analysis: 9700-9685 is a support but market is likely to be range bound for first half of this week.

You must read previous articles and watch the given chart carefully to understand this article completely.

Analysis for 21 August 2017: -

On 18 August 2017: FII Net Sold – 2182.12 INR Crs:  DII Net Bought – INR – 584.59 Crs

Last week we saw a bounce from nearer to 9700 and then hit a high at 9900 levels. Now is it resting in the mean zone? Well, I am expecting a choppy week. Market may enter in the days of dull trades. Technical support of 9700 will remain valid. Equally, I am not sure if it can see easy cross of 10000 levels.

I suggest that activity should be limited in choppy zone. If one look at the chart then one sense that market may be forming a H&S pattern on daily chart.

For today’s trading session, it is expected to open around 9850 levels. If I have to pick a direction for trade then I will prefer to pick a long trade but not for the target much above 9900. As I said if it have to pick but I am not going to pick trade on index. If one has to think about great trend break out then one need to wait for sustained trading above 9900 levels.

Top are still expected to come at 10400 but I am not too firm now. I was bullish from 9000+ and I will take market part wise. Firstly, I am focusing if this recovery can go around 10000 levels or not. First cross of 10000 was important but now it is more important to see the second attempt.

I am maintaining my bullish instance from 9000 onwards. Length of the rally should be from 9000 to 10400 levels. It hardly matters if this magnitude goes 1400 points exactly or goes as 1300 points or 1600 points. Call was bullish above 9000 and so far it is pity successful.

I can say that first sign came from sectoral performance. Under performance goes critical and hence I believe that some money may be pulled from bluechip index too. Before you think that I am bearish then let me update – I am firm on my target of 10000 on Nifty. This will just be the meantime price correction which is an unusual and healthy phenomenon.

Strategy for Nifty August future – It is expected to open around 9850 levels. I will not opt trading on index right now. I have a view that market may undergo a range bound mode. It may not break 9800 on lower side and equally it may not see easy break on higher side either. This study may be valid for 2-3 trading sessions. Let us see if we can get a direction for even 50 points.

BANK NIFTY August future – I have already forecasted that this index will not do much near 24000. This index is not stable as Nifty. I will avoid this index for trading long. I must remind that trading supports are not very frequent if it breaks 24000 levels. This index is on threatening levels. Perhaps the reason that I am not picking long trades.